CHICAGO (Reuters) - New Federal Reserve liquidity measures announced Wednesday continue the process of healing for severely injured global credit markets, but a happier day will be when the market can toss away its crutches for good.
The positive reception to moves by the Fed, ECB and Swiss National Bank in currency, equities, and credit markets was short-lived in Wednesday trading, underlining how brittle the financial system remains.
"This latest I.V. keeps the patient in stable but not critical condition, but not ready for discharge," said Doug Roberts, chief investment strategist at Channel Capital Research in Shrewsbury, New Jersey.
In that vein, GMAC (nyse: GJM - news - people ) and Ford Motor Credit (nyse: FCJ - news - people ) on Tuesday announced steps to cut back on auto leases, a move that threatened to hurt auto sales already at decade lows.
"Creditors in the United States are wary of making mortgage loans, consumer loans, and student loans, all of which are rising in price and have become less available," said Timothy Canova, professor of international economic law at Chapman University School of Law in Orange, California. "There is no forcing banks to take on increased risk at a time when their losses are mounting," he said.
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